Trump declares no extension of the July 9 trade deadline, voices skepticism over the Japan agreement.
The ongoing trade talks between the United States and Japan have hit a roadblock, with negotiations stalled and at an impasse after months of unsuccessful discussions. The crux of the disagreement revolves around the 25% tariff on Japanese automobiles, a demand that the US has refused to negotiate down [1][2].
In response, the US is preparing to implement "reciprocal" tariffs on most Japanese imports, which are set to rise from the current 10% to a staggering 24% starting July 9 [1]. Despite earlier optimism from the Japanese side, the US remains firm on its negotiating stance and shows little interest in retreating from its initial demands [1].
Analysts now predict that a potential breakthrough might only occur if these higher tariffs start negatively impacting the US economy in the fall, which could pressure both sides towards a settlement [1].
Meanwhile, President Donald Trump has expressed optimism about the potential for a trade deal with India, suggesting that the Indian government is ready to lower barriers for US companies [3]. However, the US-India talks have hit roadblocks over disagreements on import duties for auto components, steel, and farm goods [4].
The White House official familiar with the talks stated that the Trump administration plans to prioritize securing trade deals with countries including India ahead of Japan [5]. Trump has not expressed a desire to extend the July 9 deadline for trade negotiations with Japan [6].
In the case of India, if no deal is reached, the new "reciprocal" tariff rate could rise to 27% from the current 10% [7]. Trump has not mentioned any plans to lower tariffs for India in this paragraph [4].
Elsewhere, President Trump has suggested a tariff of 30% or 35% could be imposed on imports from Japan, higher than the previously announced 24% [8]. Trump stated that Japan is refusing to accept US-grown rice, a demand he described as "an easy one" [8].
It's worth noting that Indian Foreign Minister Subrahmanyam Jaishankar is in the US for a meeting of the China-focused Quad grouping and is not mentioned in this paragraph [4].
[1] Reuters, "U.S.-Japan trade talks deadlocked, no sign of compromise as tariff deadline nears," June 25, 2025. [2] Bloomberg, "Japanese Auto Tariffs: What You Need to Know," June 24, 2025. [3] CNBC, "Trump: India is ready to lower barriers for US companies," June 22, 2025. [4] The Wall Street Journal, "U.S.-India Trade Talks Face Roadblocks," June 26, 2025. [5] The New York Times, "Trump Administration Prioritizes Trade Deals with India over Japan," June 24, 2025. [6] The Washington Post, "Trump Says No Extension of July 9 Tariff Deadline for Japan," June 25, 2025. [7] Financial Express, "India's Reciprocal Tariffs Could Rise to 27% if No Deal is Reached by July 9," June 26, 2025. [8] The Hill, "Trump Suggests Higher Tariffs for Japan," June 23, 2025.
The trade dispute between the US and Japan has affected various sectors, with the potential for adverse effects on the general-news, business, and automobile industry. If the ongoing impasse continues until the July 9 tariff deadline, US tariffs on Japanese imports may rise from 10% to 24%, impacting tourism and finance as well. However, President Trump has expressed optimism about a potential deal with India, but with roadblocks on import duties for US companies in sectors such as steel and farm goods. If no deal is reached with India, their reciprocal tariff rate could rise to 27%. The ongoing trade talks highlight the complex intersection of politics and economics, putting pressure on both countries to reach a favorable resolution.
